Debt Collection for SMS and Phone Calls

SMS vs Phone Calls for Debt Collection Efforts

When it comes to debt collection, there are two main ways to contact debtors: SMS (text messaging) and Phone calls. While each methods have their own advantages and disadvantages, it is important to choose the right one for your specific collection efforts.

Phone Calls VS SMS For Debt Collection Overview

When approaching your audience for debt collection efforts, the approach of the initial outreach can be a difficult task to choose. Both phone calls and SMS (text messaging) strategies can be effective, with phone calls being the long-founded communication method of choice, SMS is now making waves as younger Americans prefer to text.

With each passing day, younger Americans are becoming a larger slice of the population, and with that SMS marketing is proving increasingly effective. Millennials for example, overwhelmingly prefer texting over phone calls. With an astounding 75% of Millenials stating they would rather lose the ability to receive phone calls over text messages.

With SMS marketing platforms being so affordable, it’s no wonder why many businesses are choosing to implement text messaging into their marketing strategies. 87% of businesses have rated SMS marketing as important to their future marketing strategy [Forrester, 2022].

Phone calls can often be a better approach when you need to have an in-depth conversation or exchange detailed information with a client. With SMS messages being limited to 160 characters, these situations are better handled with a phone call.

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SMS Statistics


SMS yields an impressive 98% open-rate


90% of texts are read within 3 minutes


Text messages have a 45% average response rate


36% Click-Through-Rate

Advantages of SMS (Text Messaging) for Debt Collection


Widespread Reach: The ability to reach your audience is vital to successful collection efforts. According to the Pew Research Center, 97% of Americans own a cell phone, meaning your messages are receivable by nearly everyone. Additionally, 97% of Americans are sending at least one text message per day, meaning they are already using SMS in their daily lives to communicate with friends, family, and businesses.

• Faster Delivery: Text messages are delivered almost instantly, making them a better option for urgent or time-sensitive messages. With sensitive conversations such as debt collection efforts, removing as many time barriers as possible is crucial. Text messages are opened within 5 minutes by over 80% of recipients. This quick delivery and open rate curates an avenue of real-time communication, with less pressure than a phone call.

• Increased response rate: Studies have shown that SMS messages have a higher response rate than phone calls. This is likely because people are more likely to read and respond to a text message they receive than they are to answer a phone call.

• Cost-effective: SMS messages are a cost-effective way to communicate with debtors. This is due to the ability to send out campaigns of large amounts of messages without the need of hundreds of call center employees as well as SMS message costs themselves being low.

Straight to the point:  SMS messages are limited to 160 characters, which forces the message being sent to be concise and straightforward. This straight-to-the-point approach means your message can be read and responded to quickly.

• Better Security: SMS messages are more secure than phone calls because they are less likely to be intercepted or overheard by people your message was not intended for.

• Automation: SMS marketing platforms such as CloudContactAI offer automation tools, which can greatly alleviate the workload for your collection efforts. This automation can save you a significant amount of time and effort, especially if you are reaching out to a large number of debtors.

Advantages of  Phone Calls for Debt Collection


Personal Connection: A traditional phone call can sometimes help build stronger rapport with clients than a text message. When you speak to someone directly, you can hear their tone of voice and even get a feel for their expressions. This can help you understand them better and build a more personal connection. This personal connection can be especially important when trying to collect a highly sensitive debt, as it can help to put the debtor at ease and make them more likely to cooperate.

• Tone and Emotion: One benefit of phone calls is the ability to convey tone and emotion, without the potential of your message seeming too blunt or deadpan. When you’re writing a text message, it can be difficult to convey your true meaning, especially if you are attempting to be persuasive. However, with a phone call, you can use your tone of voice to express your message more clearly.

• Sensitive or Complex conversations:  Some conversations are better suited to be had over the phone than with a text message. For example, if you need to discuss a sensitive topic, a phone call can give you the ability to have a more in-depth conversation without delays between messages.

Clarity: With the ability to immediately provide clarification and answer concerns, phone calls can provide a higher level of clarity than text messages. If the debtor has specific questions about the debt or collection process, you can answer them immediately. This can help to avoid misunderstandings and alleviate any reservations the client may have.


In closing, both SMS and phone calls have their benefits and drawbacks for debt collection efforts. The best way to handle your collection efforts is by taking the time to review the individual circumstances of the debtor and then carefully choose the appropriate path toward collection.

If you are considering using SMS or phone calls for debt collection, it is important to do your research and understand the laws and regulations that apply to you. It is also important to ensure you are using a trustworthy and reputable SMS marketing platform or Phone call debt collection agency for your efforts.

With careful consideration and execution, SMS and phone calls can both be effective tools to collect debts and improve your client relations.

What Industries Can Utilize SMS Marketing?

SMS Marketing for Automotive


SMS Marketing for Banking


SMS Marketing for Debt Collection

Debt Collection

SMS Marketing for Gyms


SMS Marketing Platform for Healthcare


SMS Marketing for Hospitals


SMS Marketing for Political Campaigns

Political Campaigns

SMS Marketing for Real-Estate

Real Estate

SMS Marketing for Retail Stores


SMS Marketing Platform for Restaurants


Text Message Marketing for Sports Facilities

Sports Facilities

Text Message Marketing for Veterinarians


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Cody Kelly

Cody Kelly

Cody is an experienced Marketing Specialist with over a decade worth of experience in marketing and client success. He creates and optimizes content, articles and guides to help businesses of all sizes grow. With a background in marketing, hospitality, and finance, Cody has consistently increased profitability for clients with strategic planning while delivering first class service.

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